Homeowners may face second ‘valuation’ charge

HOMEOWNERS facing a property tax announced in this week’s budget could face a second “valuation” charge through the building of a national database on homes.

The suggestion of valuing homes for a national database for the new tax was raised at an Oireachtas Committee meeting yesterday.

TDs heard how the present domestic property database was out of date and unreliable if used to impose the new tax.

The Valuation Office said it could play a role in the implementation of the new tax, along with possible help from the private sector.

The agency – which assesses commercial lands for state use – helped advise the Commission on Taxation about the property tax announced this week.

The Valuation Office said yesterday any efforts to set up a much-needed data- base on domestic properties for the new tax could see the private sector become involved in price assessments.

The Valuation Office itself already charges local authorities and private property owners for assessments or appeals.

Commissioner of Valuation Aidan Murray told the Public Accounts Committee (PAC) that its offices could play a role in any new domestic property database. The last one was done in the 1980s.

Any housing property database – similar to existing commercial and industrial databases – would almost certainly be part funded by assessment charges paid by homeowners.

Mr Murray said the Valuation Office at present was assessing 170,000 properties nationwide which were commercial and industrial, paid for by the taxpayer, as well as through charges. Any extra area would require funds.

“Anything additional would require a resource issue.”

TDs and senators were told how the Valuation Office had given the Commission on Taxation key advice about rolling out the new property tax announced by the Finance Minister this week.

Mr Murray indicated that the current outdated home property database could be insufficient if used for the new tax. It was “rough and ready”, he told committee members. It was “substantially out of line” at the moment, he added.

Environment Minister John Gormley has also expressed concern about how out of the date the domestic property database is.

Within the private sector, there were qualified people who could be used by the State to help evaluate the home property market, Mr Murray said.

The Valuation Office, which employs over 150 staff, spent nearly €12 million last year. Some €2m of this came from charges related to assessments.

Assessment reviews cost €250, TDs were told.

A national revaluation programme by the office, pricing mainly commercial properties across local authorities and counties, is expected to take 10 years at a cost of €45m, the committee also heard.